Dire savings rates drive eightfold rise in IFISA savings
New statistics published this morning by HMRC show the amount of money invested in Innovative Finance ISAs has risen eightfold, from £36m to £290m in just a year.
The number of people that have opened IFISAs has also risen sixfold to 31,000.
Andrew de Candole, CEO of easyMoney, commented: “Banks seem to be doing their best to kill off the cash savings account, by offering savers an unattractive deal.
“The number of people with IFISAs is growing at a massive rate, while the number of people with cash ISAs has fallen for five years in a row.
“Savers have had enough of the dire interest rates offered to them by cash ISAs, and are finding something far better on offer through IFISAs.
“With the best easy-access cash ISAs paying much less than inflation, people are asking ‘why bother?’ What is the point in putting your hard-earned money in a savings account that destroys its value?”
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